Big changes are coming to Philadelphia real estate. Starting July 1, 2025, the Philadelphia Realty Transfer Tax is going up—impacting closing costs for both buyers and sellers. Whether you're house-hunting, listing your home, or helping clients navigate this shift, this update is for you.

Here’s everything you need to know (no legalese, just real talk)—plus what to do right now if you're planning a move in the city.

What Is the Philadelphia Realty Transfer Tax?

Let’s start simple: the Realty Transfer Tax is a one-time tax paid when real estate changes hands. In Philadelphia, it’s historically one of the highest in the country—currently totaling 4.278% of the purchase price, usually split between the buyer and seller.

As of July 1, 2025, the city will increase its portion of the tax, bringing the total closer to 4.78%. That 0.5% difference may not sound like a lot, but it adds up fast.

For example: On a $550,000 home, that extra half-percent means $2,750 more due at closing.

What’s Changing on July 1?

The Philadelphia City Council passed an ordinance that raises the city’s share of the transfer tax from 3.278% to 3.778%. This brings the total transfer tax to 4.778% as of July 1, 2025.

This applies to all real estate transactions settling on or after that date, regardless of when the contract was signed. So if you’re under contract now, but close after June 30, the higher rate applies. It’s a hard line—and one that could impact your bottom line if you don’t plan ahead.

For Buyers: More Closing Costs, Less Wiggle Room

If you're searching for Philadelphia homes for sale under $850K, this update could squeeze your budget, especially if you’re a first-time buyer or trying to avoid PMI.

How this affects you:

• Expect to pay several thousand more in closing costs if you buy after June 30.

• That could impact your down payment, interest rate, or your ability to bid on a property you love.

What you can do now:

• Move fast. Explore available homes now—check out our listings and book a tour ASAP.

• Talk to your lender. Get pre-approved and understand how the new tax affects your total costs.

• Make a smart offer. If you're house hunting this week, closing before July 1 is still possible!

For Sellers: Timing Matters

If you're thinking of selling, the transfer tax increase could spook some buyers—or push them into lower price brackets. But you still have time to leverage urgency to your advantage.

How to make the most of it:

• List now, not later. Many buyers will want to close before July to avoid higher costs. Use that deadline to generate demand.

• Be flexible with terms. A quicker closing may be more attractive than a higher price.

• Emphasize value. Highlight upgrades, outdoor space, and location—especially in high-demand areas like Fairmount or Graduate Hospital.

Need help prepping fast? Let’s talk strategy and get your home listed quickly

For Agents & Brokers: This Is a Moment to Lead

This isn’t just another headline—this is a real moment to support your clients and show your expertise.

Here’s what to focus on:

• Educate and reassure. Some clients may not understand how the tax works or assume it doesn’t affect them.

• Know your dates. You’ll want to coordinate with title companies, lenders, and inspectors to push closing before July 1 whenever possible.

• Help your buyers negotiate. With closing costs increasing, buyers may ask sellers for concessions—or vice versa. Be ready to guide those conversations with clarity.

Want to collaborate on a game plan? Reach out—Fresh Places is always up for partnering on smart, client-first solutions.

Countdown: Beat the Tax Increase Before July 1

You’ve got two weeks (or less, depending on your timeline). Here’s what to do:

Buyers:

• Finalize financing

• Lock in a home under contract now

• Request a close date before June 30

Sellers:

• Schedule listing photos immediately

• Get your property live this week

• Price to move before the deadline

Agents:

• Communicate urgency (without fear tactics)

• Clarify what “closing before July 1” actually means

• Set up weekly check-ins with your pipeline

Final Thoughts: This Isn’t a Dealbreaker, But It Is a Wake-Up Call

Philadelphia remains one of the most exciting and accessible housing markets in the Northeast. Even with this tax increase, homes here offer incredible value—especially when you have the right team guiding your move.

If you’re on the fence about buying or selling this summer, this is your sign: now’s the time to act.

Let’s beat the July 1 deadline together: Explore listings | Book a consult